Building Societies Act Amendment Act 1972 (Qld)

203 QueeltSlMYtZt ANNO VICESIMO PRIMO ELIZABETHAE SECUNDAE REGINAE No. 25 of 1972 An Act to Amend the Building Societies Act 1886-1971 in certain particulars [ASSENTED TO 19TH DECEMBER, 1972] BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short title and citation . (1) This Act may be cited as the Building Societies Act Amendment Act 1972.

204 Building Societies Act Amendment Act 1972, No. 25 (2) The Building Societies Act 1886-1971 is in this Act referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Building Societies Act 1886-1972. 2. Repeal of and new s. 23. Section 23 of the Principal Act is repealed and the following section is inserted in its stead:- " 23. Employment of funds. (1) Subject to this section a Registered Society shall employ its funds for such of the following purposes as are provided for in its rules- (a) for making advances to members of the Society upon security of their shares; (b) for making advances to members and other persons and to corporate bodies upon the security of freehold or leasehold estate by way of mortgage; (c) for making advances to other Registered Societies; and (d) generally for carrying out such purposes of mutual advantage as are provided for in the rules. (2) Notwithstanding anything to the contrary contained in the rules of the society concerned- (a) advances referred to in paragraph (b) shall be made only on the security of a first mortgage; and (b) the employment of funds for making advances or for other purposes pursuant to subsection (1) shall, directly or indirectly, be related to the provision of accommodation for residential purposes. (3) The funds available for employment under subsection (1) shall not include- (a) such resources of the Registered Society within the meaning of subsections (2) and (3) of section 23D as are not less than the prescribed proportion of the total of members' paid up share capital and deposits (whether by members or other persons) held by the Society; (b) the amount expended for the provision of business premises pursuant to section 25 which in any financial year shall not exceed a sum equal to five per centum or such other proportion as may be determined by Order in Council, of the amount, if any, by which the total of members' paid up share capital and deposits (whether by members or other persons) held by the Registered Society at the end of the financial year immediately preceding the financial year in question exceeded the amount of such capital and deposits held by the Society at the beginning of such financial year immediately so preceding.".

Building Societies Act Amendment Act 1972, No. 25 205 3. Amendment of s. 23A. Maximum interest rates on loans. Section 23A of the Principal Act is amended by inserting after subsection (2) the following subsections:- " (2A) Save as otherwise provided by this section, a Registered Society shall not seek, accept, demand or receive, directly or indirectly, from a person to whom moneys are advanced by the Society any commission, fee, bonus or reward for or in connexion with the advances if the total amount of any such commission, fee, bonus or reward together with the amount of the interest at the applicable rate paid, or payable, by the borrower to the Society exceed, or would exceed, the amount of the interest on such advances that would have been paid, or would be payable, by the borrower if such interest had been, or were calculated, at the prescribed rate at the relevant time or times. (2n) It is lawful for a Registered Society to charge and recover from a prospective borrower a fee fixed by the Society to cover the actual cost of processing an application by the prospective borrower for an advance by the Society of certain moneys, such fee not to exceed three-quarters of one per centum of the amount of the advance applied for and in addition to charge and recover from the borrower costs, fees and charges- (a) paid or payable by the Society in respect of the preparation by a solicitor or conveyancer of documents properly evidencing or securing the contract for the advance; (b) assessed and paid or assessed and payable (whichever is the lesser) by the Society in respect of stamp duties or registration fees payable under any Act in respect of the advance or in respect of documents relating (whether wholly or in part) thereto and in the latter case, attributable to the advance in question; (c) paid by the Society in respect of a valuation obtained in connexion with the advance in question, but it shall not be lawful for a Registered Society, directly or indirectly, to seek, accept, demand or receive any commission, fee, bonus or reward for or in connexion with any payment as specified in paragraph (a), (b) or (c) from the person to whom such a payment has been made or is payable.". 4. Amendment of s. 23C. Maximum advances . Section 23c of the Principal Act is amended by adding at the end thereof the following subsections:- " (3) The amount of the premium paid in respect of insurance effected for the purposes of this section shall be payable by the member and may be included in the amount of the advance.". 5. Amendment of s. 24 . Issue of shares . Section 24 of the Principal Act is amended- (a) by renumbering that section as subsection (1); and (b) by adding the following subsection:- " (2) The maximum rate of dividend or interest that may be paid by a Registered Society in respect of any share issued by the Society whether pursuant to this section or otherwise shall not exceed six and one-half per centum per annum or, where some other rate has been fixed by Order in Council, such other rate.".

206 Building Societies Act Amendment Act 1972, No. 25 6. Amendment of s. 25 . Business premises . Section 25 of the Principal Act is amended- (a) by renumbering that section as subsection (1); and (b) by adding the following subsection:- " (2) The powers conferred on a Registered Society by subsection (1) refer only to a building that the Registrar is satisfied is primarily or mainly required for conducting therein its business.". 7. Amendment of s. 26. Power to borrow money. Section 26 of the Principal Act is amended by adding after provision (6) the following provisions:- " (7) Subject to provision (8) of this section the maximum rate of interest that may be paid by a Registered Society in respect of any sum deposited with or lent to the Society shall not exceed six and one-half per centum per annum or, where some other rate has been fixed by Order in Council, such other rate. (8) Where so prescribed in an Order in Council under provision (7) of this section or in another Order in Council the maximum rate of interest for the time being applicable pursuant to that provision shall not apply with respect to specified loans to or deposits with Registered Societies or to such loans or deposits of a specified class. (9) No commission, fee, bonus or reward, whether pecuniary or otherwise, shall be paid or given by a Registered Society, directly or indirectly, to a person lending to, or depositing with, the Society any moneys if the total amount so paid or given by way of commission, fee, bonus or reward together with the amount of the interest at the applicable rate, paid or payable, on the moneys by the Society to the lender or depositor exceed, or would exceed, the amount of the interest on such moneys that would have been paid, or would be payable, to the lender or depositor if such interest had been, or were calculated, at the maximum rate permissible under provision (7) of this section at the relevant time or times.". 8. Amendment of s. 29. Paid officers to give security . Section 29 of the Principal Act is amended by"omitting the words " Committee of Management " (twice occurring) and inserting in their stead the word " board ". 9. Repeal of s. 38 and new ss. 38, 38A and 38B . Section 38 of the Principal Act is repealed and the following sections are inserted in its stead :- " 38. Amalgamation . (1) Any two or more Registered Societies may apply to be registered as an amalgamated society with or without any winding up or any division of the funds of the societies or any of them. (2) No such application shall be made- (a) unless the terms of the amalgamation are approved by a special resolution of each of the societies; or

Building Societies Act Amendment Act 1972, No. 25 207 (b) if the amalgamation is disapproved in writing by the holders of not less than one - third . of the whole number of shares of an amalgamating society and such disapprovals are received by the society in question before the expiration of a period of one month commencing on the date on which the statement referred to in subsection (1) of section 38B is sent to members of the society in question pursuant to that subsection, unless the amalgamation is confirmed under subsection ( 3) of that section. (3) The application shall be in or to the effect of the form prescribed and shall be accompanied by- (a) two copies of the proposed rules of the amalgamated society; ( b) such other particulars as may be prescribed. (4) If the Registrar is satisfied that the societies have complied with the provisions of this Act and that the proposed rules of the amalgamated society are not contrary to this Act, the Registrar shall, upon the surrender to him of the certificates of incorporation of the amalgamating societies or production of such evidence as to the loss of any of them as the Registrar may require , register the amalgamated society and its rules, issue a certificate that the society is incorporated as an amalgamated society under this Act and notify the issue of the certificate in the Gazette in the prescribed form. (5) The Registrar may, following the issue of the certificate under subsection ( 4) remove from the register the name of any of the societies which have so amalgamated. (6) The amalgamation shall not prejudice any right of a creditor of any society which is a party to the amalgamation. (7) Upon the issue of the certificate of incorporation the property of each society that is a party to the amalgamation shall on and from the date thereof and by virtue of this Act without any conveyance, transfer or assignment , except as otherwise provided in this section , vest in the amalgamated society. (8) For the purposes of this section the property of the societies that are parties to the amalgamation shall include all estates and interests in property , whether real or personal, vested or contingent. (9) In the following cases the property shall not vest until the appropriate transfer is executed and registered so that the property is duly transferred , that is to say, in the case of- (a) any land subject to the provisions of The Real Property Acts 1861 to 1963. (b) any property a transfer of which is required to be registered by any other Act. (10) In the case of any property that is only transferable in books kept by a corporation , company or other body or in manner directed by or under any Act, the property shall not vest until it is duly transferred.

208 Building Societies Act Amendment Act 1972, No. 25 (11) If any property does not vest under this section until transfer or registration, the amalgamated society shall, by virtue of this Act, have the right to call for a transfer of the property to the amalgamated society or to such person as the board may direct, and to sue for or recover the property, and in the case of a bill, and memorandum, of mortgage under The Real Property Acts 1861 to 1963 or under any Act relating to Crown land (including any Act relating to mining or mining tenures), may exercise any power conferred on the mortgagee by any Act, or by the mortgage or may discharge the mortgage as if the amalgamated society were the registered proprietor thereof. (12) Any property which is vested in or transferred to the amalgamated society by virtue of or in pursuance of this section shall be subject to any debt, liability or obligation specially charged on or affecting the same. (13) All debts and liabilities, whether certain or contingent, and whether then existing or capable of arising at a future time, to or with which any society that is a party to the amalgamation is, at the date of the certificate of incorporation of the amalgamated society liable or charged, shall by virtue of this Act become and be the debts and liabilities of the amalgamated society. (14) The members of an amalgamated society shall be the persons who, immediately before the amalgamation, were members of the societies that were parties to the amalgamation, and any other persons who are admitted to membership in accordance with the rules of the amalgamated society. 38A. Transfer of engagements . (1) Subject to this section a Registered Society may by special resolution transfer its engagements to another such society which undertakes to fulfil those engagements; and a Registered Society may- (a) by special resolution; or (b) with the consent of the Registrar, by resolution of a general meeting or of the board, undertake to fulfil the engagements of another Registered Society. (2) A transfer of engagements between societies under this section shall not have effect- (a) unless the special resolution of the transferor society has been registered; and (b) where the holders of not less than one-third of the whole number of shares of the transferee society or as the case may be, the transferor society have disapproved in writing of the transfer, unless the transfer has been confirmed under subsection (3) of section 38n. (3) The Registrar, before registering the special resolution referred to in paragraph (a) of subsection (2) may require such evidence as he deems necessary to ensure- (a) that the transferee society has by means authorised in this section undertaken to fulfil the engagements of the transferor society; (b) that the statements referred to in section 38B have (unless exemption has been granted by the Registrar pursuant to subsection (1) of that section) been issued; and

Building Societies Act Amendment Act 1972, No. 25 209 (c) that the transfer has not been disapproved as specified in subsection (2) (unless the Registrar has, pursuant to the provisions of subsection (3) of section 38B confirmed the transfer). (4) Within one month of the passing under subsection (1) of a resolution to which paragraph (b) of subsection (1) refers, the society shall notify the Registrar that the resolution has been passed and if the society fails so to notify the Registrar, the society and every officer of the society who is in default, shall be guilty of an offence and be liable to a penalty not exceeding five hundred dollars. (5) The provisions of subsections (6) to (13) inclusive of section 38 shall apply, mutatis mutandis, to a transfer of engagements where a society transfers the whole of its engagements to another society, and for the purpose of that application- (a) a reference to amalgamation shall be construed as a reference to transfer of engagements; (b) a reference to the amalgamated society shall be construed as a reference to the society to which the engagements are transferred; (c) a reference to a society that is a party to the amalgamation shall be construed as a reference to the society transferring its engagements; and (d) a reference to the issue of the certificate of incorporation shall be construed as a reference to the registration of the special resolution of the transferor society referred to in subsection (1). 38B. Supplementary provisions as to amalgamation or transfer of engagements . (1) A Registered Society desiring to amalgamate with one or more other Registered Societies or to transfer its engagements to another Registered Society, or to undertake to fulfil the engagements of another Registered Society, shall unless exempted in writing by the Registrar, send to each of its members a statement the contents of which have been approved by the Registrar concerning- (a) the financial position of the society sending the statement and that of the other society or societies concerned; (b) the interest of the directors of the society sending the statement in the amalgamation or transfer of engagements and that of the directors of the other society or societies concerned; (c) the compensation or other consideration proposed to be paid to the directors or other officers of the society sending the statement and of the other society or societies concerned; (d) the payments to be made to members of the society sending the statement and of the other society or societies concerned in consideration of the amalgamation or transfer of engagements; (e) the right of members of the society to disapprove of the amalgamation or transfer of engagements and the effect of disapproval by holders of not less than one-third of the whole number of shares of the society; and

210 Building Societies Act Amendment Act 1972, No. 25 (f) such other matters as the Registrar may direct. (2) A statement under, subsection (1) shall be sent so that it will in due course of post reach each member not later than the time at which he would receive notice of the meeting calle3 to pass the special resolution referred to in subsection (2) of section 38 or subsection (1) of section 38A, as the case may require. (3) (a) A Registered Society may apply to the Registrar to confirm an amalgamation or transfer of engagements notwithstanding that the disapprovals in writing of the holders of not less than one-third of the whole number of shares of that society have not been obtained. Where any such application is made the society shall give notice of the application in such manner, at such times and in such newspapers as the Registrar may direct. (b) The Registrar may, after hearing the society and any other person whom he may consider entitled to be heard, confirm the amalgamation or transfer of engagements accordingly.". 10. Amendment of s. 42 . Penalties for breach of Act. Section 42 of the Principal Act is amended by omitting the words " Committee of Management " (thrice occurring) and inserting in their stead the Word " board ".